The searing market for newly public companies has a new obsession: grills.
Two leading sellers of outdoor grills and grilling accessories, Weber and Traeger, both filed paperwork for initial public offerings earlier this month, while online grilling-and-outdoor-products retailer BBQGuys on Tuesday agreed to go public by combining with a special-purpose acquisition company. The merger values BBQGuys at about $960 million.
All three of the companies have been around for a long time but are seeking to cash in on sudden excitement fueled by the coronavirus pandemic. Weber, Traeger and BBQGuys each reported a recent sales surge as more consumers refurbished their backyards and became barbecue enthusiasts, tapping into one of the stay-at-home themes that have dictated much of the stock market’s performance in the past 15 months.
By far the largest of the three companies by revenue, Weber has been a backyard-grill staple for decades. The company was founded by George Stephen nearly 70 years ago and said in its filing that sales for the six-month period that ended March 31 rose about 60% from a year earlier to roughly $960 million.
Traeger is known for its pricier wood-pellet grills and said on Wednesday that it plans to raise about $400 million in its IPO, which would value the company at around $2 billion. The Salt Lake City-based firm is aiming to price its shares between $16 and $18 under the ticker symbol COOK. Its sales more than doubled in the first quarter to about $235 million.
